5 Ways a Property Management Company Can Save You Money
Many landlords think that managing their own properties will save them money; but most quickly come to realize that not hiring a qualified company can actually cost them money in the long run. Here are 5 of the tops reasons having a company by your side can keep more money in your pocketbook:
1) Get higher quality tenants: A bad tenant can end up costing you more money than a vacancy. Consider the costs of trying to get them evicted, court costs, etc. As a landlord, you may be inclined to accept the first tenant that arrives onsite; property management companies, though, know and understand the screening process and can differentiate between reputable applicants and non-reputable ones. These professionals will work to find the best suited tenants for your property, ensuring more reliable monthly income for you.
2) Efficient rent-collection process: Do you have a schedule of collecting rent on the first of every month from your tenants? Or do you just collect it when you get around to it? Do you have to work around your own schedule and perhaps miss a day at your day job to make sure the rent is collected? If you’re not collecting rent on time, it means less money in your pocket, and less interest accumulating in the bank. A property management company will have rent collection processes in place that make sure you get paid on the same day every month.
3) Budget-conscious maintenance: Landscaping, furnace inspections, painting, gardening, and other maintenance duties can all add up. These are necessary tasks, so they can’t be taken off of your to-do list. A property management professional can make sure that these important tasks get done at the reasonable cost possible. Oftentimes, they can negotiate a better price for these services than you would be able to.
4) Reduction of vacancy times: Because professional management companies have better screening processes, they can find tenants that will be with you for the long term. This means less vacancy time, which in turn means more rent money to collect each month. The quality of tenant really does make a difference and that means you don’t have to worry about extended vacancies or tenants moving out after just a few months.
5) Time is money: Do you need to take time off of your day job to tend to your rental property? Do you spend your days dealing with various tenant issues or calling roofers, HVAC specialists and other home maintenance contractors? All of these activities mean that you are losing out on true money-making activities. By letting property management professionals handle all of these details, you can concentrate on other things.
When you become a landlord, there are many things to consider, not the least of which is how you’re going to make money on a consistent basis. It’s not just about finding the right tenants, although this is important; making and keeping money depends on finding the right management company to help you find good tenants, maintain your property and act as a liaison between you and third-party contractors.
Benefit National is a full service property management company. Visit the website for more information.